A/HRC/40/57 IV. Articulation of policies Principle 11 – Policy coherence States should ensure that governmental departments, agencies and other Statebased institutions that take part in and/or shape economic reform policies take into account States’ human rights obligations when fulfilling their respective mandates, and that policy coherence is guaranteed for short-, medium- and long-term economic reforms, in order to protect all human rights. In particular: (a) Adequate financial resources should be allocated for the effective implementation of social policy, fully taking into account the economic situation of the population. Social policy should be designed to address and reverse the effects of economic downturns, while ensuring respect for human rights; (b) Fiscal policy should be used as a countercyclical tool to prevent and/or manage crises, as well as to equalize opportunities and maximize the realization of human rights; (c) Monetary policies should be coordinated and consistent with other policies with the aim of respecting, protecting and fulfilling human rights; (d) Financial sector regulation is required to identify, prevent, manage and fairly allocate the human rights risks created by financial instability and illicit financial flows; (e) Debt policies should be consistent with broad goals related to sustainable economic development and the realization of human rights; (f) Proposed economic reform measures should be informed by and align with individual and collective State measures to facilitate national and global environmental protection, recognizing the interdependence between human rights and a healthy environment.15 Commentary 11.1 Social policy includes a wide range of policies, from social security (retirement/pensions and insurance, including unemployment) to labour,16 education and health. Other areas are often affected − either directly or indirectly − by privatization of services traditionally provided for by the State, such as water and sanitation services, social housing, prisons and detention centres, and migration management. Some social policies are directed to specific population groups, such as persons with disabilities, refugees and asylum seekers or persons living in poverty. All have a clear gender component that has to be included to avoid increasing the gender divide in access to resources (education, health services, housing, labour market, etc.). 11.2 Fiscal policy can play a major role in achieving equality, tackling discrimination and strengthening governance and accountability, as well as combating poverty and funding development. Fiscal policy also has a clear and welldocumented effect on economic growth: while pro-cyclical contractionary fiscal policy reduces economic growth, expansionary fiscal policy during downturns increases growth. Positive and negative changes in government expenditure are likely to have a higher than proportional impact on growth. In turn, changes in economic growth will affect the tax revenue of Governments. Domestic resource mobilization can be a tool to ensure the realization of human rights and promote inclusive growth. Increasing government revenue more directly depends on robust redistributive and progressive taxation regimes. The respective impact of revenue 15 16 A/HRC/37/59, paras. 11 ff. See A/HRC/34/57. 11